PGN Group Beli LNG PT Kayan LNG Nusantara, Kembangkan Pasar LNG Retail Di Kalimantan Dan Indonesia Timur

Photo: Doc. PGN

JAKARTA - Pertamina Gas Subholding, PT PGN Tbk, and PT Pertagas Niaga (PTGN) as PGN affiliates agreed to sign an LNG Sale and Purchase Agreement (PJB LNG) with PT Kayan LNG Nusantara. In this PJB LNG, PGN Group purchased LNG supply of 3-5 BBTUD for LNG Retail needs in Kalimantan and Eastern Indonesia, and is expected to optimize LNG market and use of natural gas in areas that have not been reached the gas pipeline infrastructure.

The signing of PJB LNG between PGN Group and PT Kayan LNG Nusantara was carried out by PGN's Director of Strategy and Business Development Heru Setiawan, President Director of PT Pertagas Niaga Aminuddin, and President Director of PT Kayan LNG Nusantara Antony Lesmana.

Kayan's LNG allocation is a kick off for LNG purchases at PGN as a whole to support the LNG trading business. In operations and sales, there is Pertagas Niaga and PGN Gagas assigned to distribute LNG for domestic needs. In addition, PGN is also building mini LNG liquidation in several areas," said PGN President Director, M. Haryo Yunianto, in a written statement, Sunday, October 23.

Haryo continued, PGN and Kayan will carry out joint marketing for additional LNG allocations from Kayan and optimize LNG Portfolio cargo for international markets.

PGN's Director of Strategy and Business Development Heru Setiawan added that to meet natural gas needs in East Kalimantan and Indonesia, the beyond pipeline distribution scheme is needed. Natural gas will be channeled using a non-pipeline transportation mode because it is not yet connected to the gas pipeline network.

"PGN initiated the use of liquid natural gas, namely Liquefied Natural Gas (LNG), so that it can be distributed to end users," explained Heru.

PGN needs LNG supply support, so PGN invites business entities that can provide LNG, one of which is PT Kayan LNG Nusantara. Control in natural gas market management makes PGN confident in moving retail LNG.

The development of retail LNG is one of the PGN values starting in 2022. We view that the need for energy conversion to natural gas in the Kalimantan and Eastern Indonesia is very large, so this is also a challenge for PGN. Regions that are already accessible to LNG are expected to grow. LNG can become energy for industry, smelters, power plants, and households," said Heru.

Antony Lesmana as the President Director of PT Kayan LNG Nusantara said that Kayan was always encouraged to build an LNG mini factory by utilizing the existing gas source.

In this ecosystem, PGN is an important part and is a customer. This LNG PJB is the first collaboration for the mini LNG business and the LNG market is big enough to be marketed together so that it will benefit both parties," said Antony.

Heru emphasized that PGN is ready to invest in retail LNG development and is open to cooperation with other business entities to channel LNG to end users so that LNG business acceleration can be realized. Retail LNG optimization is also one way for PGN to fill the energy transition.